(Patria) - Sarajevo Canton Prime Minister Nihad Uk sent a conclusion this week to ministries, Sarajevo Canton institutions, administrative and independent cantonal organizations, as well as the Municipal and Cantonal Courts, and the Sarajevo Canton Prosecutor's Office, ordering austerity measures, a freeze on competitions and hiring, reduced procurement, and extended payment terms for services. Patria has confirmed the document's arrival from two public institutions and one ministry within the Sarajevo Canton Government, which has a significant number of capital projects in the Canton.
According to information obtained by Patria, the Sarajevo Canton Government held a session at the beginning of this week where it adopted certain conclusions after reviewing the Information from the Ministry of Finance of Sarajevo Canton for 2025.
As stated in that information, revenues realized from January to July 28 amount to 737.9 million KM, with a budget revenue realization of 50% compared to the plan.
The Ministry of Finance warns that the current inflow of revenue is insufficient to compensate for the planned revenue level in the Sarajevo Canton Budget for 2025, which was adopted at the end of March 2025.
We remind you that the Sarajevo Canton Budget amounted to 1.88 billion KM. The initial proposal for the Sarajevo Canton Budget was not accepted by the Minister of Finance, Afan Kalamujić, who warned that expenditures must be reduced. Even then, he warned his colleagues in the Sarajevo Canton Government that there was no more room for "popular projects." Although the opposition warned that this was an unrealistic budget, the consequences for Sarajevo Canton and its functioning are now evident.
For example, the Sarajevo Canton Budget for 2025 planned revenue from profit tax of 222 million KM, and in seven months, only 61 percent, or 136 million KM, was realized.
Regarding indirect taxes, the budget planned 575 million KM, and only 51 percent, or 294 million KM, was realized. Other planned budget revenues were also significantly less realized, such as cantonal administrative fees, cantonal court fees, fines for misdemeanors...
In Sarajevo Canton, court fees have increased, and their application has already begun. Public transportation, utility services from Toplane-Sarajevo, VIK, have also become more expensive, and price adjustments are expected from KJKP Rad, Pokop...
Data from the Ministry of Finance of Sarajevo Canton shows that a deficit of nearly 180 million KM was realized in 2024.
Based on the recommendations of the Ministry of Finance of Sarajevo Canton, the Sarajevo Canton Government adopted a conclusion that all public sector institutions in Sarajevo Canton that have received this conclusion must adhere to.
The Sarajevo Canton Government orders the suspension of public competition procedures for new hires at all budget users, which do not represent essential positions. In certain cases, additional consent from the Sarajevo Canton Government is required before signing contracts.
Regarding suppliers and payments for contracted services, budget users are instructed to negotiate to extend the agreed payment terms for goods, services, and works that have been contracted.
One of the ministries told Patria that work contracts will also be suspended.
We remind you that at the beginning of January this year, the Sarajevo Canton Anti-Corruption Office published an analysis of work contracts concluded in 2024 in public sector bodies in Sarajevo Canton.
Based on data entered by institutions in Sarajevo Canton via the web application into the Register of Work Contracts of Public Sector Institutions of Sarajevo Canton, funds in the amount of 2,166,739.59 KM were allocated from the Sarajevo Canton Budget in 2024 for this purpose.
The largest amount of funds spent in 2024 on work contracts was by the state administration bodies of Sarajevo Canton, totaling 853,058.59 KM, followed by institutions in the field of culture and sports of Sarajevo Canton, totaling 593,628.00 KM.
The institutions with the largest amount of money spent on work contracts in 2024 are: JU National Theatre Sarajevo, Ministry of Education and Upbringing of Sarajevo Canton, and KJKP “Gradski saobraćaj” d.o.o. Sarajevo.
The Ministry of Education and Upbringing of Sarajevo Canton, headed by Naida Hota-Muminović, had 169 work contracts in 2024, and JU Institute for the Development of Pre-University Education had 108.
According to data from the Register, engagement through work contracts continued in 2025, and several ministries and public institutions are under scrutiny by the Anti-Corruption Office and the Sarajevo Canton Prosecutor's Office.
The lack of funds in the Sarajevo Canton Budget is also shown by the delay in paying holiday bonuses in the Sarajevo Canton public sector, and trade unions are sending letters and urgencies to the Sarajevo Canton Government for payment by the beginning of September.
Given that the new school year is approaching, hiring for schools and the implementation of those competitions are now also in question.
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